D&K Healthcare Resources Prices Follow-On Stock Offering.Business Editors ST. LOUIS--(BUSINESS WIRE)--June 29, 2001 D&K Healthcare Resources, Inc. (Nasdaq: DKWD DKWD Disk Write Data ) announced today that the sale of 2,971,978 shares of common stock in a follow-on public offering, including 971,978 shares from selling shareholders has been priced at $33.50 per share. Total proceeds from the offering will be approximately $99.6 million. Net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). received by D&K will be approximately $63.0 million. D&K has granted an option to the underwriters to purchase up to an additional 445,797 shares to cover over-allotments. D&K plans to use the net proceeds from the offering to repay a portion of the approximately $109.6 million outstanding balance on its revolving line of credit Revolving line of credit A bank line of credit on which the customer pays a commitment fee and can take and repay funds at will. Normally a revolving LOC involves a firm commitment from the bank for a period of several years. . A portion of the proceeds may also be used to make strategic acquisitions. D&K stock is traded on the Nasdaq National Market under the symbol DKWD. The lead underwriter Lead underwriter The head of a syndicate of financial firms that are sponsoring an initial public offering of securities or a secondary offering of securities. Could also apply to bond issues. for the offering is Raymond James and the co-manager is A.G. Edwards & Sons, Inc. A copy of the final prospectus Final Prospectus A legal document stating the price of a newly issued security, the delivery date, and other facts that are important for investors. Notes: The final prospectus must be given to every investor who purchases a new issue of registered securities. may be obtained from Raymond James, 880 Carillon carillon, in music: see bell. carillon Musical instrument consisting of at least 23 cast bronze bells tuned in chromatic order. Usually located in a tower, it is played from a keyboard. Most carillons encompass three to four octaves. Parkway, St. Petersburg, Florida St. Petersburg (often shortened to St. Pete) is a city in Pinellas County, Florida, United States. The city is known as a vacation destination for North American and European vacationers, as well as a politically important battleground in U.S. Presidential politics. 33716. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful. With fiscal 2000 revenues of $1.46 billion, St. Louis-based D&K Healthcare Resources, Inc., is a wholesale distributor of pharmaceutical and related healthcare and beauty aid products to independent and regional pharmacies, national pharmacy chains and other healthcare providers. D&K currently services customers in 24 states primarily in the Midwest and South from distribution facilities in Cape Girardeau, MO; Davie, FL; Lexington, KY; Minneapolis, MN; Aberdeen, SD; and through its recent acquisition of Diversified Healthcare LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , in Owensboro, KY. D&K also offers a variety of additional services to its customers, including inventory management, services designed to contain costs, information technology systems and various marketing programs related to generic pharmaceuticals and other products. In addition, D&K owns a 68% equity interest in Pharmaceutical Buyers, Inc., a recognized alternate-site group purchasing organization A group purchasing organization is an entity that leverages the purchasing power of a group of businesses to obtain discounts from vendors based on the collective buying power of the GPO members. Many GPOs are funded by administrative fees that are actually paid by the vendors. . D&K invites you to visit its Web site at http://www.dkwd.com. This press release may contain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements are inherently subject to risks and uncertainties. D&K's actual results could differ materially from those currently anticipated due to a number of factors, including without limitation, the competitive nature of the wholesale pharmaceutical distribution industry, with many competitors having substantially greater resources than D&K, and D&K's customers generally having the right to terminate or reduce their purchases on relatively short notice, the changing business and regulatory environment of the healthcare industry in which D&K operates, change in interest rates and other factors set forth in reports and other documents filed by D&K with the Securities and Exchange Commission from time to time. D&K undertakes no obligation to publicly update or revise any forward-looking statements, and gives no assurance that the public offering will be completed. |
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